check my source

It’s about setting strategies, overseeing management and finances, developing relationships with community members or establishing ethical standards and values, the duties of the management board are many and diverse. Boards select and oversee the CEO; they establish vision, mission, and strategic goals; they establish community relations; they establish management practices in quality, governance, and compliance; and lastly, they deal with organizational changes resulting from changing conditions and regulatory pressures.

As fiduciaries boards are legally responsible for representing shareholders and owners as well as investors. They establish corporate rules, make guidelines for dividend payouts and compensation, and hire/fire the top management. They also maintain a high level of communication with management and serve as their representative to the company. The chair of the board, who is often elected from the board membership and is a leader for the entire board. Most often, they are non-executive directors (NED) and act as the liaison with the chief executive officer.

The biggest function of the board is to act as a steward of the organization. However some boards are prone to becoming management, seeking to take on things themselves rather than simply making sure that the activities are in line with the organization’s commitment to its mission. Boards must focus on balancing their oversight responsibilities and their responsibility for ensuring organizational success. This can be done most efficiently by utilizing committees. For example audit, compensation, and nominations committees have become well-known ways of examining complicated issues. These committees report their findings to the entire board.